Can these agreements be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states; exceptions such as certain court orders and wills apply. Ensure intent, consent, attribution, and record retention to satisfy legal tests.

Is notarization required?

Most freight terms do not require notarization. If a signature or guaranty clause references a notarized acknowledgment, follow state notary rules. For RON, confirm state allowances and identity-proofing requirements.

What if party names differ on documents?

Mismatched legal names can create enforceability issues. Always use the legal entity name as registered and attach an amendment or signature page that clarifies authority when using trade names.

How long do I keep executed agreements?

Retain the active agreement for the contract term plus at least 3 years. For tax or healthcare connections, follow IRS rules (IRC §6501(a)) and HIPAA retention (45 CFR §164.530(j)).

How should claims be submitted?

Follow the contract's claims procedure exactly: submit within the stated notice window with required documentation. Late or incomplete claims are frequently denied.

Who must sign the agreement?

An authorized representative with contracting authority must sign. Confirm internal delegation limits; procurement or legal teams often require a countersignature to finalize terms.

Electronic Signature
Templates
Legal
Freight Terms Agreement

Freight Terms Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FREIGHT TERMS AGREEMENT

This Freight Terms Agreement ("Agreement") is entered into as of by and between Shipper Name: , an entity type: organized under the laws of , with principal place of business at ("Shipper"), and Carrier Name: , an entity type: organized under the laws of , with principal place of business at ("Carrier").

RECITALS

WHEREAS, Shipper requires transportation and related services for freight shipments described in individual shipping instructions and bills of lading issued pursuant to this Agreement; and

WHEREAS, Carrier is engaged in the business of transporting freight and agrees to provide transportation services subject to the terms and conditions set forth herein; and

WHEREAS, the parties desire to set forth their respective rights, obligations and rates for carriage of freight between the parties.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement: "Bill of Lading" means any transportation document, contract of carriage or other receipt issued by Carrier or its agent; "Consignee" means the entity designated to receive the shipment; "Equipment" means trailers, containers and other conveyances used by Carrier; "Delivery" means tender of the shipment to the Consignee at the agreed place of delivery; "Charges" means all transportation, accessorial, fuel, tax and other amounts invoiced by Carrier.

2. SCOPE OF SERVICES

Carrier shall transport Shipper's freight from origin to destination as specified in individual load confirmations or bills of lading issued under this Agreement. Carrier shall provide qualified personnel, equipment in safe operating condition, and shall perform carriage in a timely and workmanlike manner consistent with industry standards and applicable law.

3. RATES, CHARGES AND SURCHARGES

The base transportation rate for each shipment will be the mutually agreed rate reflected in the applicable load confirmation: Base Rate: $. All Charges are exclusive of applicable taxes. Carrier may assess additional accessorial charges for detention, layover, reconsignment, liftgate service, inside delivery, or other services requested by Shipper or required by circumstances.

Fuel surcharge: . Applicable accessorial rates and detention rates shall be billed in accordance with Carrier's tariff or the parties' written rate schedules. Carrier shall provide such tariff or rate schedules on request.

4. INVOICING AND PAYMENT

Carrier shall issue invoices to Shipper for Charges upon or after delivery. Payment terms: Net days from invoice date. Late payments shall accrue interest at per month or the maximum permitted by applicable law, whichever is less.

Accepted Payment Methods

ACH Wire Transfer Check

Billing Address for Invoices

5. ACCESSORIAL CHARGES AND DETENTION

Accessorial charges shall be assessed when Shipper or Consignee requests services beyond standard pickup and delivery. Detention shall be charged at per hour after allowable free time of hours.

6. INSURANCE AND LIMITATION OF LIABILITY

Carrier shall maintain automobile and liability insurance and shall provide certificates on request. Carrier's liability for loss, damage or shortage to cargo transported under this Agreement shall not exceed the lesser of (a) actual documented loss or (b) $ per pound, unless a higher declared value is agreed in writing prior to shipment and Carrier accepts such declared value for an additional fee. Parties acknowledge that special, incidental, punitive, exemplary or consequential damages are excluded to the maximum extent permitted by law.

Cargo insurance: Carrier provides primary cargo insurance Shipper to procure cargo insurance.

7. INDEMNIFICATION

Each party shall indemnify, defend and hold harmless the other party and its officers, directors and agents from and against any claims, liabilities, losses, damages, fines and expenses (including reasonable attorneys' fees) arising out of the indemnifying party's negligence, willful misconduct, breach of this Agreement, or violation of applicable law in connection with the performance of this Agreement.

8. CLAIMS PROCEDURE

All claims for loss, damage or shortage must be made in writing to the other party within days of delivery (or the date delivery was due) and must include a description of the claim, value, and supporting documentation. Failure to give timely written notice shall bar recovery to the extent permitted by law.

Claims Submission Address

9. FORCE MAJEURE

Neither party shall be liable for delay or failure to perform to the extent such delay or failure is caused by acts beyond its reasonable control, including but not limited to acts of God, war, terrorism, labor disputes, civil commotion, governmental actions, epidemics, fires, floods, or delays in supply. The affected party shall provide prompt notice and use commercially reasonable efforts to mitigate the effect of such events.

10. TERM AND TERMINATION

This Agreement shall commence on the effective date and continue for a term of unless earlier terminated as provided herein. Either party may terminate this Agreement for convenience with days' prior written notice. Either party may terminate immediately for material breach if the breach remains uncured for days after written notice specifying the breach.

11. CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party non-public business information of the other party disclosed in connection with this Agreement, except as required by law or to enforce rights under this Agreement. Confidential information shall not include information that is or becomes public through no fault of the receiving party.

12. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses below by certified mail, overnight courier, or personal delivery and shall be effective upon receipt.

Notice to Shipper Notice to Carrier

13. AMENDMENTS AND WAIVER

No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties. No waiver by either party of any breach shall be deemed a waiver of any subsequent breach.

14. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of without regard to its conflict of law principles.

15. ENTIRE AGREEMENT

This Agreement, together with any attached rate confirmations and bills of lading, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

16. SEVERABILITY

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid or unenforceable provision with a valid provision that, to the extent possible, achieves the original intent of the parties.

17. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronic signatures shall be deemed original signatures for all purposes.

Special Instructions or Additional Terms

Shipper Printed Name:

By:

Date:

Carrier Printed Name:

By:

Date:

What a Freight Terms Agreement Covers

A Freight Terms Agreement is a written contract that sets the commercial and logistical terms governing transportation of goods between a shipper and a carrier or broker. It defines payment terms, freight rates, liability limits, delivery windows, responsibilities for loading and unloading, claims procedures for loss or damage, and conditions for detention, demurrage, and accessorial charges. The agreement clarifies which party bears insurance, customs, and compliance obligations and establishes dispute resolution and governing law. Having a clear Freight Terms Agreement reduces operational uncertainty and helps manage financial exposure across the shipping lifecycle.

Why a Clear Freight Terms Agreement Matters

A concise Freight Terms Agreement allocates risk, sets billing practices, and streamlines claim handling between shippers, carriers, and brokers. It reduces invoicing disputes and clarifies who pays for delays, detention, and extra services, improving cash flow predictability.

Who Typically Prepares and Signs This Agreement

Multiple parties touch freight terms: operational staff, contract managers, transportation brokers, and legal teams each contribute to drafting and approval.

Shippers and logistics managers who set pricing and delivery expectations for outbound shipments.
Carriers and trucking companies that accept liability limits and agree accessorial charge schedules.
Freight brokers and third-party logistics providers (3PLs) coordinating between shippers and carriers.

Step-by-Step: Completing the Freight Terms Agreement

Follow a clear sequence to draft, review, and execute the agreement to reduce delays and ensure compliance.

01

Identify Parties: Enter full legal names and contact information for each signatory.
02

Define Services: Specify shipment types, routes, and any special handling requirements.
03

Set Financial Terms: Record rates, accessorial charges, payment timing, and dispute resolution steps.
04

Review and Sign: Have authorized signers approve and sign; retain executed copies for records.

Core Clauses to Include in a Professional Agreement

A complete Freight Terms Agreement contains clauses that allocate risk, define services and charges, and prescribe remedies for non-performance.

Scope

Describe the types of freight, lanes, containerization, weight limits, and any excluded commodities that affect pricing and performance obligations.

Rates

Set base rates, fuel or surcharge formulas, and how accessorials (detention, layover, reconsignment) are calculated and invoiced.

Liability

Specify carrier liability limits, valuation method for loss/damage, and required insurance levels for physical and cargo coverage.

Indemnity

Allocate indemnification for third-party claims, environmental harms, or customs penalties and state limits or carve-outs where necessary.

Claims

Define notice deadlines, required documentation, investigation procedures, and a timeline for claim resolution and payment.

Termination

List termination rights, cure periods, outstanding payment procedures, and survival of confidentiality, indemnity, and governing law clauses.

Essential Administrative Details to Record

Contact Info: Name, phone, email

Billing Address: Street, city, state

Tax ID: EIN or SSN as required

Insurance: Policy type and limit

Service Levels: Transit time commitments

Signatory: Authorized signer name

Where to Send and File the Executed Agreement

Agreements must be routed to operational, billing, and legal contacts and stored with procurement records for auditability.

Operational Copy: Send signed PDF to operations team for routing and scheduling.
Billing File: Forward executed agreement to accounts payable and receivable.
Legal Repository: Save a version in the contract management system for dispute reference.
Carrier Records: Provide carriers with a countersigned copy for their files.

Digital Signing and Distribution Options

You can execute freight terms electronically using eSignature platforms that meet legal and security standards.

File formats: PDF, DOCX, or templated forms
Delivery channels: Email links, secure portals
Integration: Connect with ERPs and TMS

Typical Online Workflow Settings for Freight Agreements

Configure your eSigning workflow to include required fields, signer order, and authentication before sending the agreement for signature.

Field	Configuration
Signature Fields	Assign to each signer in order
Required Fields	Make dates and rates mandatory
Signer Authentication	Email link or SMS code
Routing	Auto-send copies to billing and legal

Key Timing Rules and Deadlines

Track deadlines for effective dates, notice windows for claims, invoice due dates, and termination cure periods to avoid penalties.

Effective Date:

Starts on the MM/DD/YYYY stated in the agreement

Invoice Due Date:

Commonly Net 30 from invoice date; vary as negotiated

Claims Notice:

Often 5–15 days for visible damage; check the clause

Dispute Window:

Typically 30–60 days to raise billing disputes

Cure Period:

Often 10–30 days before termination rights trigger

Common Mistakes to Avoid

Leaving liability and valuation language vague, which invites conflicting interpretations during a claim.
Failing to specify accessorial charge rules such as detention, demurrage, and reweigh fees leads to surprise invoices.
Using inconsistent party names or unsigned amendments that create enforceability gaps in multi-leg relationships.
Omitting exact invoice dispute procedures and timelines, which can forfeit defenses or prompt late-payment penalties.

Risks and Financial Consequences of Errors

Denied Claims: Late notice may invalidate recovery

Unexpected Charges: Accessorials can increase costs sharply

Payment Disputes: Interest and collection fees accrue

Contract Breach: Termination and indemnity exposure

Regulatory Risk: Customs or hazardous goods fines

Recordkeeping Failure: Loss of audit defense

eSignature Pricing and Feature Snapshot

Compare common vendor starting prices and core capabilities relevant when executing Freight Terms Agreements; signNow is listed first per comparison convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	Varies	Varies
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Freight Terms Agreements

Answers to common questions about execution, enforceability, and practical handling of freight terms.

Need help? Contact support

Can these agreements be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states; exceptions such as certain court orders and wills apply. Ensure intent, consent, attribution, and record retention to satisfy legal tests.
Is notarization required?
Most freight terms do not require notarization. If a signature or guaranty clause references a notarized acknowledgment, follow state notary rules. For RON, confirm state allowances and identity-proofing requirements.
What if party names differ on documents?
Mismatched legal names can create enforceability issues. Always use the legal entity name as registered and attach an amendment or signature page that clarifies authority when using trade names.
How long do I keep executed agreements?
Retain the active agreement for the contract term plus at least 3 years. For tax or healthcare connections, follow IRS rules (IRC §6501(a)) and HIPAA retention (45 CFR §164.530(j)).
How should claims be submitted?
Follow the contract's claims procedure exactly: submit within the stated notice window with required documentation. Late or incomplete claims are frequently denied.
Who must sign the agreement?
An authorized representative with contracting authority must sign. Confirm internal delegation limits; procurement or legal teams often require a countersignature to finalize terms.

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